3 Places You Should Sell Your Gold and 3 Places You Should Not Sell It
Currently, gold is trading near a record high. It recently surpassed $5,000 an ounce.
That means if you have old jewelry, coins, or bullion sitting in a closet, you’re probably sitting on a pile of hard cash. If you’re wondering how to turn your gold jewelry into cash when prices are high, you’re not alone.
But here is the ugly truth. The higher the price of gold, the more scammers and low bidders come out of the woodwork.
The FBI has warned people about gold scams where sophisticated operations encourage you to convert your money into precious metals, then send a courier to your front door to steal it. If you don’t know what you are doing, you will be taken for a ride.
You can’t just walk into the first place with a neon sign that says “We Buy Gold” and expect a fair deal. You need a strategy. Here are three places you should consider selling your gold, and three you need to avoid like the plague.
Where to go to sell your gold
1. Local money shops established: If you have gold coins or regular bullion, reputable local coin dealers are often your best bet. They operate on tight, known margins based on the daily spot price of gold. Because they have a physical storefront in your community, they rely heavily on reputation.
You can check out these stores on the Better Business Bureau, read local reviews, and get an in-person quote. In addition, you leave with cash in hand on the same day.
2. Largest Online Ammunition Dealers: If you’re selling well-known gold bars or famous coins like American Eagles, online dealers like APMEX or JM Bullion are transparent.
They post their purchase prices right on their websites, so you know exactly what you’re getting before you put your gold in the mail. It takes a few days to get paid, but you avoid fraud and get a competitive rate.
3. Qualified appraisers or auction houses: If you own antique gold jewelry, rare coins, or designer pieces, don’t sell them for scrap. The historical or collector value is often much higher than the raw metal value.
As a rule of thumb when selling your gold jewelry and coins, pay a certified appraiser a flat fee – never a percentage of the item’s value – to tell you what you really have. If it’s something special, the auction house will get it in front of collectors willing to pay a premium.
Where not to go to sell your gold
1. Companies that earn money from gold: You’ve seen the late night commercials. They send you a prepaid envelope, send your jewelry, and send you a check. Don’t do this. Some of these companies are notorious for paying a fraction of the value of your gold.
Worse, they often use a clockwork tactic where if you don’t reject their lowball offer within a few days, they melt your gold and the deal becomes final.
2. Pawn Shops: I have nothing against pawn shops for buying something, but they are generally a bad place to sell gold. These businesses have high capital and need to make a big profit on everything they buy.
They are not looking to give you the fair market value of your gold; they want to buy it cheap enough to sell it again and keep the lights on. You will almost always find a better price at a dedicated coin or jewelry store.
3. Customers of hotels and gang events: Sometimes you’ll see ads for traveling buyers who set up shop in a local hotel conference room on the weekend, offering to buy your gold and silver. Run the other way.
This usually applies to flying at night. They come to town, rely on high-pressure sales tactics to buy your valuables for pennies on the dollar, and leave before you know you’ve been taken. If you realize the next day that you made a mistake, there are two states left.
Before you sell a single ounce, know what you have and check the current spot price to make more money. Always get at least three different quotes. Your money. Don’t let someone else take it.
